Equity Residential (EQR) Q4 2025 earnings summary

Executive summary

• 2025 was challenging for the rental housing sector, with strong first-half rental growth offset by deceleration in the second half, except in San Francisco and New York, which outperformed and are expected to continue strong in 2026.

• 2025 same store NOI was slightly below guidance due to lower other income growth, while expenses were in line with expectations.

• Achieved highest full-year resident retention in company history and maintained high physical occupancy at 96.4%.

• Shareholder returns totaled $1.38 billion in the past year through dividends and share repurchases.

• The company is optimistic for 2026, expecting improved performance as new supply declines and demand remains steady, especially in key markets.

Financial highlights

• 2025 same store revenue grew 2.6% year-over-year, with expense growth at 3.7%.

• Achieved blended rent growth of 0.5% in Q4 2025, with a 4.5% renewal rate offset by negative new lease rates except in San Francisco.

• 2025 EPS was $2.94, FFO per share was $3.94, and Normalized FFO per share was $3.99.

• 2026 guidance: EPS of $1.44–$1.56, FFO per share of $3.98–$4.10, and Normalized FFO per share of $4.02–$4.14.

• Returned over $1.3 billion to shareholders in 2025 via dividends and stock repurchases.

Outlook and guidance

• 2026 same store revenue growth expected between 1.2% and 3.2%, with expense growth of 3.0% to 4.0%.

• NOI growth guidance for 2026 is 0.5% to 2.5%.

• Portfolio occupancy targeted at 96.4% for 2026, with continued strong retention and low turnover.

• 35% decline in new multifamily supply, especially in 2H26, is expected to support stronger operating results.

• Guidance assumes flat job growth, with upside if job market improves.